Bank loans and the age of the borrower. What amounts are available for each age group?
Every person in life may need to raise cash. Everyone may need a bank loan, regardless of age. Does it matter at what age the client applies for a loan? Will 19 years old get the same offer as a person over 30? We will try to answer the most frequently asked questions from our clients. How does the borrower’s age affect banking offers?
The borrower’s age, therefore, a lot of myths have accumulated, so we will try to discuss them and present how it is in practice. For the sake of clarity, we will present several age categories. They certainly do not refer to the offers presented by banks, because the bank does not provide information on the approach to age. They are only an attempt to rank the banks’ approach to people of different ages based on our experience.
Bank loan for the age group 18 to 21 years.
Banks will not have amazing amounts to offer in this age group. Young people are usually not yet stable. They do not have a stable job that would guarantee the possibility of paying off the loan for the next few years.
A person with no credit history and permanent employment can count on bank loans up to USD 15,000 most often. After six months of repayment, the appearance of a positive credit history will be available to her higher amounts, up to USD 150,000. At the very beginning, banks will offer smaller amounts to build customer confidence.
The borrower’s minimum age depends on the bank. For 18 years, banks will propose relatively small amounts. Banks are relatively the safest, for which the youngest customer may be the one who is celebrating his 21st birthday today.
It is worth remembering that banks do not credit such young customers the best. If a young person needs a larger amount, it is worth thinking about an approach to a loan with a guarantor, or build a credit history, which significantly helps in obtaining good and large loan offers. To sum up, the borrower’s young age is relatively small amounts obtained and expensive offers.
Bank loans in the 22-28 age group.
The described period marks the beginnings of stabilization of people interested in loans. The first serious job, starting a family. As a result, banks give the group a bit more confidence when they see the work history or its continuity with subsequent employers. In this group, people without a credit history will also not get large amounts, but they will not have a problem with amounts of 30,000. If they have a credit history, banks will not apply limits. Only offers received will not be among the cheapest due to age, slightly different from the model client.
Bank loans for people between 29 and 45 years old.
The age category is best considered by banks. A customer from this age group working on an indefinite employment contract is usually considered a model bank customer. Getting a mortgage in this situation will be the easiest, and the cheapest and the highest cash loans.
At this age, a statistical people is already a stable professional figure. Banks also see in this group the lowest loan loss ratio . This means that people who take loans from 29 to 45 years old are their best payers.
Even when working on mandate or fixed-term contracts, banks consider clients better if they fall under the age category we describe. It may happen that 20 and 35 years old in the same situation will meet with a completely different decision of the bank. The first one will get a refusal due to high credit risk and the second one will leave the bank with the corresponding offer of a cash or consolidation loan.
Bank loans for thick age from 46 to 65 years.
This group is also a fairly good group for banks. Stable work and life provide good repayment options. In this group, borrowers already obtain fewer mortgages. More often they decide on consolidation loans, which are an ordering of their liabilities. The Group is paying more and more attention to the cost of loans, more often it agrees to additional credit insurance, which in the event of an accident or death will not burden the loved ones. People from this age group are also more likely to become co-borrowers or guarantors on their children’s loans.
Bank loans, borrower age 66 years plus.
People over 66 are quite a problematic group for banks. An average people lives on average 74 years, an average people lives 81 years old. Banks are afraid of lending to clients over 70 or 80 years old. Granting a loan to a 70-year-old customer for 12 years would be associated with considerable risk for banks. Therefore, almost all loans for seniors granted by the bank are encumbered with additional insurance in the event of the borrower’s death.
Typically, banks determine the maximum age of the borrower assuming repayment of the last installment of the loan obtained. The issue of the maximum age in banks is quite mobile, which is why it is difficult for us to list which specific banks best approach advanced age. It is good to ask a proven advisor which banks currently have amounts of a certain age. Advisor will certainly tell you which banks have the best offers for older people in a given month.